USD/JPY Price Analysis: Surges to fresh multi-month tops, fast approaching 112.00 mark

• USD/JPY continued gaining traction for the second consecutive session on Thursday.
• Overbought conditions on hourly/daily charts now warrant some caution for bulls.

The USD/JPY pair added to the overnight strong gains and jumped to fresh multi-month tops, closer to the 112.00 round-figure mark during the early European session on Thursday.

The previous session's sustained break through a four-month-old ascending channel was seen as a fresh bullish trigger and continued fueling the momentum for the second straight day.

However, technical indicators are pointing to extremely over-stretched conditions on hourly charts and have just started moving into the overbought territory on the daily chart.

The set-up warrants caution for bullish traders, rather makes it prudent to wait for some consolidation or a modest pullback and before positioning for any further near-term gains.

Meanwhile, any meaningful pullback now seems to attract some dip-buying near the 111.60-50 region and should help limit any deeper losses amid fading safe-haven demand.

USD/JPY daily chart